The Sales-Mix Variance Will Be Unfavorable When Which of the Following

question 103

Multiple Choice

The sales-mix variance will be unfavorable when which of the following occurs?

• A) the actual sales mix shifts toward the less profitable units
• B) the contribution margin per composite unit for the actual mix is greater than the budgeted mix
• C) the actual unit sales are less than the budgeted unit sales
• D) the actual contribution margin is less than the static-budget contribution margin

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Definitions:

Corporation

A legal entity that is separate from its owners, providing them with limited liability and the ability to raise capital through share issuance.

Purported Partner

An individual who is represented or appears to be a partner in a business, regardless of the formal truth of that status.

Financial Difficulties

A situation in which an individual or organization struggles to manage their monetary obligations, potentially leading to insolvency or bankruptcy.

RUPA

An acronym for the Revised Uniform Partnership Act, which is a statutory law that governs the formation, operation, and dissolution of partnerships in the United States.